Bangladesh secures landmark LNG deal with US firm

Bangladesh has entered into a significant non-binding agreement with US-based Argent LNG to secure an annual supply of up to 5 million tonnes of liquefied natural gas (LNG).

This marks the largest deal by a US company for LNG supply since Donald Trump took office as US president, highlighting the administration's energy-friendly policies, reports bdnews24.com, citing Reuters.

Argent LNG is building infrastructure in Louisiana capable of supplying 25 million tonnes of LNG annually.

Once the Port Fourchon project is completed, the company will sell LNG to Bangladesh's state-owned Petrobangla under the agreement.

"This agreement will not only ensure reliable energy supply to Bangladesh's growing industries but also strengthen our strategic partnership with the United States," said Ashiq Chowdhury, executive chairman of the Bangladesh Investment Development Authority.

For years, Bangladesh has been seeking long-term solutions to meet its rising energy demands and expand LNG usage.

However, the Russia-Ukraine war in 2022 drove up global LNG prices, prompting Bangladesh to increase reliance on coal-based energy.

Trump, upon assuming office, reversed a suspension on LNG export licences for countries without free trade agreements with the US.

This executive order was part of efforts to boost LNG exports.

According to the US Energy Information Administration, the country is now the world's largest LNG exporter, with export capacity expected to double by 2028.